Revolution Bars Rejects Nightcap Proposal, Says its ‘Incapable of Being Delivered’

Revolution Bars Group (LON: RBG) rejected a takeover proposal from competitor Nightcap on Tuesday, calling it “incapable of being delivered.” 

On May 17, 2024, the company said it received a non-binding proposal from Nightcap. While details are confidential, Revolution Bars cited several challenges with Nightcap's plan.

The main concerns were around funding and timing. Nightcap's proposal required multiple fundraising rounds, whereas Revolution Bars already secured £12.5 million in their own plan. Additionally, legal advice suggested Revolution Bars' restructuring wouldn't be feasible under Nightcap's timeline.

Nightcap's proposal also involved extensive due diligence, potentially delaying a final decision for months. This delay would have created a funding gap that Nightcap didn't clarify how to bridge.

“There is significant procedural driven risk and cost associated with the Nightcap Proposal over and above the level of risk that applies to the Existing Plan,” stated Revolution Bars. “Following legal advice, the Board has concluded that the Nightcap Proposal is incapable of being delivered, which was communicated to Nightcap last week.”

Revolution Bars' current lender also expressed concerns about the Nightcap proposal's execution risk and lengthy process.

Despite rejecting the offer, Revolution Bars said it remains open to future proposals from Nightcap or others, but only after completing their restructuring plan.